AGC is playing a lead role in securing federal funding to help member companies retrofit their equipment on a voluntary basis and earn positive national recognition. We worked to attain reauthorization of federal Diesel Emissions Reduction Act (DERA) grants through 2016 and to amend certain provisions of the bill to help Chapters and members compete for federal aid under the U.S. Environmental Protection Agency (EPA) National Funding Assistance Program.
President Obama signed the extension of DERA that authorizes $100 million a year in federal grant funds for eligible “diesel retrofit” projects (e.g., emissions reduction projects, engine re-powers and new vehicle purchases) over fiscal years 2012 through 2016. The actual annual amount will depend on each year’s funding appropriation. The program was first established under the Energy Policy Act of 2005 (P.L. 109-58) and authorized $200 million annually for five years through fiscal year 2011. During reauthorization, the funding level was reduced by 50 percent to gain passage through Congress, considering the still slowly rebounding economy and a mounting federal deficit. Since the grants program was established, annual appropriations generally have been significantly below the authorized level – only $50 to $60 million has actually been appropriated in the last three annual appropriation bills – although Congress did provide an additional $300 million in the 2009 stimulus law.
AGC worked through a broad coalition effort to support the reauthorization of DERA. The new bill makes two significant changes advocated by AGC that will make the grants more available to construction contractors. First the bill eliminates a requirement that 50 percent of the funds be made eligible only for public sector vehicles. The second change allows individual companies under contract with public agencies to apply directly for the grants rather than through a third party non-profit organization or government agency. Other changes in the program will streamline the application process and provide more transparency.
Allen Schaeffer, executive director of the Diesel Technology Forum, calls the program “one of the nation’s most successful clean air programs [that] has provided an average of $20 worth of environmental and health benefits for every $1 spent.”
AGC Chapters Win Diesel Grants, Help Contractors Retrofit Equipment
Over the past five years, AGC Chapters and members have joined forces with other industry partners to voluntarily apply for federal grants under the EPA National Clean Diesel Funding Assistance Program. Notwithstanding the extremely fierce competition, the following AGC Chapters have won millions and leveraged millions more (in matching and in-kind contributions) to help their members afford the high cost of reducing emissions from construction equipment that is currently out in the field—- AGC of Greater Florida members sharing in $1.6M grant awarded to Florida Refrigeration and Air Conditioning Contractors Association (awarded 2010)
- AGC of Greater Milwaukee was awarded $500,000 grant (awarded 2010)
- AGC of Kentucky awarded $50,000 and $2M grants (awarded 2007 and 2009)
- AGC of Minnesota members sharing in $3M and $977,243 grants awarded to Minnesota Environmental Initiative (awarded 2009 and 2010)
- AGC Oregon- Columbia Chapter Foundation was awarded $120,000 grant (awarded 2005)
- Constructors Association of Western Pennsylvania (AGC) partnered with Allegheny County Health Department, awarded $925,000 grant (awarded 2009)